2017 Fintech Analyst Note: Asset Management

May 18, 2017

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Here's the latest entry in PitchBook's continuing research of the fintech space, with this analyst note providing an update on the most important trends within asset management. As passive investing continues to rake in billions and traditional players either develop their own low-cost digital advisory platforms or engage in M&A, it's clear that the trend toward lower-cost, more easily accessible pathways to investment is not slowing down anytime soon.

Key takeaways:

So far millennial enthusiasm for digital advice remains limited to a generational shift. VCs have been betting billions that this will prove contagious for older investors eventually, yet we have concerns about customer acquisition costs outside of the core demographic.

Alternative investments and strategies have become more accessible to retail and traditional advisors as new fintech gatekeepers have emerged out of necessity since large institutions pared back hedge fund allocations.

Many of the largest platforms have accessible, easy-to-use core product suites, but differentiation and moats such as brand and expanded offerings are the exception, not the rule.